factors affecting profit of broiler industry in peri-urban areas of...
TRANSCRIPT
Factors affecting Profit of Broiler Industry in Peri-urban areas of Faisalabad
byMustafa, G. and M. Ashfaq
Sequence of Presentation
Introduction/importance
Methodology
Results/Main findings
Conclusion and Recommendations
Introduction Growth of the poultry sector is 15-20 % per annum.
Per capita consumption is 3.696 kg.
Share in GDP is 1.1 % and in Agri. GDP is 4.8 %.
Share in total meat production is 23.8 %.
Numbers of poultry farms, feed mills and hatcheries in the country
are 28000, 141 and 285 respectively.
Directly/indirectly employed people are 1.5 million.
Chicken meat production in Pakistan is 707(‘000) tonnes out of
Asian’s 28691.1 (‘000) tonnes.
Pakistan ranks 11th in Asia.
Importance In poultry, short period is required for growth and marketing.
Can adjust rapidly to changing factors e.g. feed, availability, cost, numbers
of birds on feed.
Other livestock business require longer length of time from birth to market
(e.g. cattle)
It has proved to be a profitable business and is a good source of cheap,
palatable and nutritious food protein
Some Important Breeds of Chicken
Cochin Chickens Americana Chickens Andalusian Chickens
Aracauna Chickens Broiler Flock
Australorp Chickens Hamburg Chickens
Leghorn Chickens Broiler Chicken
Cont…
Methodology Faisalabad district was selected for research study.
All the tehsils were selected.
Tehsil Frequency Percent
Faisalabad 30 25.0
Jarranwala 30 25.0
Sammundri 30 25.0
Tandliawala 15 12.5
Chak Jhumrah 15 12.5
Total 120 100.0
Profit function
Y = f(X1, X2, X3, X4, X5, X6)Where
Y = Gross profit
X1 = Purchase Price per chick
X2 = Feed Cost per kg
X3 = Labor Cost per kg
X4 = Mortality Rate %
X5 =FCR (kg feed consumed to gain 1 kg weight)
X6 = Miscellaneous Cost e.g Cost of Building and Machinery
Depreciation, electricity, Heating and Cooling Charges and rent ( Rs.
Kg-1 LW).
RESULT AND DISCUSSION
Socio Economic Characteristics1. Family SizeFamily Members Frequency Percent
Below 5 10 8.3
6-8 33 27.5
9-11 37 30.8
12-14 26 21.7
Above 14 14 11.7
Total 120 100.0
2. Farming ExperienceCont…
Experience (years) Frequency Percent
Below 5 42 35.0
6-10 23 19.2
11-15 21 17.5
16-20 17 14.2
21-25 9 7.5
Above 25 8 6.7
Total 120 100.0
3. AgeCont…
Age Frequency Percent
Below 25 11 9.2
26-30 20 16.7
31-35 25 20.8
36-40 28 23.3
41-45 18 15.0
46-50 9 7.5
Above 50 9 7.5
Total 120 100.0
4. EducationEducation Level Frequency Percent
Illiterate 30 25.0
Primary 20 16.7
Middle 20 16.7
Matric 22 18.3
Inter 12 10.0
Graduation or Above 16 13.3
Total 120 100.0
Cont…
Model UnstandardizedCoefficients
t- value Significant
Constant 28.533 3.311 0.001
Purchase Price Chick -1 -0.181 -2.941 0.004
Feed Cost kg -1 -0.701 -7.752 0.000
Labor Cost kg -1 -0.530 -0.742 0.460
Mortality Rate % -1.036 -14.133 0.000
FCR 2.172 5.160 0.000
Miscellinious Cost kg -1 -0.577 -2.220 0.028
The estimated regression model
R2= 72.1 %Adjusted R2 = 70.7 %
Pf = Y = 58.533 – 0.181 X1 – 0.701X2 – 0.530X3 – 1.036X4+ 2.172X5 – 0.577X6
Conclusion and Recommendations
Share or commission fees of the commission agents.
Availability of the credit to broiler producers.
Price stability of broiler in the market.
Training and knowledge regarding broilers farm
such as new feeds compounds and new technology.
